Chapter 5: Local Road Quantity Calculation and Cost Estimation 144 the unit prices computed and the quantities calculated in the same prescribed format for the Calculation of Approved Budget for the Contract (see Table 5.3 with the corresponding computations for each column). The total for each Bid Part or Bill Item of this cost estimate is carried to the Summary of Costs and the total project cost is compiled in the Total Project Estimate, which is the Approved Budget for the Contract (ABC) issued in the advertisements. A Program of Works should be prepared based on the ABC, the standard form of POW shall conform to DPWH DO #163 – Series of 2015. Provision for Dayworks and Contigencies amounting to 10% of project maybe added to project cost if necessary. Sample quantity calculation templates are attached as Annex 4A, while sample cost estimation templates are shown in Annex 4B 4.2 Road Works by Administration There are instances where local engineering oiffces will undertake local road works By Administration or Force account; By Administration process can be done only if there is a failure of bidding due to reasons beyond IA control, emergency situation, peace and order in the project site, provided that the concern LGU is ifnancially and technically capable to implement the project. Provided further that the said LGU has implemented a similar project with a cost equivalent to 50% of the proposed projects. Assessment of such shall be conducted by DPWH. whether these are new road construction, rehabilitation, maintenance, improvement or upgrading. However, it is understood that accounting for such projects shall be within the government usual accounting and auditing process. Labor costs shall fall under Government salary/ wages standards. The threshold amount for labor will depend on LGU category or Classiifcation. (please refer to Annex 1 of RA 9184 and its IRR – Guidelines in the Implementation of Projects by Administration 4.2.1 Direct Costs The Direct Costs for By-Administration Road Works shall follow the DPWH DO # 197- Series 2016. These direct costs should similarly include: a. Material Costs. If the material source (quarry source) is owned by the LGU, materials cost should be accounted or